Wednesday, August 4, 2010

#Flash* Genting Malaysia wins bid to redevelop racetrack-casino in New York

KUALA LUMPUR:'' Genting Malaysia has won a bid to redevelop a racetrack cum casino project in New York.

According to New York Daily News website on Aug 3, the state Lottery Tuesday recommended the operator Genting New York for the long-stalled project after three previous failed rounds of bidding dating back a decade.

Genting offered a whopping $380 million upfront payment to the state, US$80 million higher than what had been offered in previous rounds.

The news report said lottery director Gordon Medenica had stated the recommendation for Genting - the only remaining bidder - was based on the merits of the proposal and "vastly reinforced" by the offered upfront money.

"Genting's proposal was far superior in concept, scope, detail, and execution to any we have seen in previous rounds of evaluation," Medenica said in his recommendation letter.

Genting, according to Medenica, is a "vastly experienced and professional gaming company and their proposal reflects a deep and insightful understanding of the opportunity and challenges at Aqueduct."

New York Daily New said two other bidders, Penn National Gaming, which offered $325 in upfront money, and S.L. Green, which offered $300 million, were disqualified earlier in the process for not meeting Lottery's stated requirements.

"They made the fatal assumption that the process was still open to maneuvering and negotiation," Medenica wrote.

By contrast, Genting "respected the very rigorous selection process" developed after "the missteps of the past," he wrote.

In addition to the immediate $380 million payment, Genting's plan would create more than 2,000 CONSTRUCTION [] and racino jobs.

Once operating, the racino is expected to generate more than $500 million a year in state revenue that will be used to help fund education.


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